by a refocused federal research program. For example, rather than trying to expand the limits of native organisms, the Office of Fuels Development research program could investigate the underlying mechanisms of these limits in nature through genomics and other fundamental studies. Armed with a fundamental understanding of natural limitations, companies would be in a better position to undertake their own applied development programs.

The Office of Fuels Development should return to its traditional role of providing a technical basis for future commercial ventures. Advancing the technology base will help new processing plants improve their competitive position and pave the way for the next generation of processing plants.

The Office of Fuels Development should support and encourage, perhaps by interagency cooperation with the U.S. Department of Agriculture and other federal agencies, work on coproducts of bioethanol manufacturing.

Because of a lack of any foreseeable opportunity for reducing the production costs of biodiesel, the Office of Fuels Development should consider eliminating its biodiesel program and redirecting those funds into the bioethanol program.